In Macroland,the Components of Planned Aggregate Expenditure Are Given By

question 73

Multiple Choice

In Macroland,the components of planned aggregate expenditure are given by:
C = 100 + 0.9(Y - T) - 500r
I = 150 - 1,000r
G = 200
NX = 50
If potential output equals 3,200,net taxes equal 100,and the central bank sets the interest rate to equal 0.05 (5%) ,then at the short-run equilibrium,there is a(n) ______ gap of _______.

• A) expansionary;100
• B) expansionary;150
• C) recessionary;50
• D) recessionary;100
• E) recessionary;150

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Definitions:

Activity-Based Costing

A costing methodology that assigns the costs of overhead activities to products or services based on their consumption of those activities, aiming to provide more accurate cost information.

Activity Cost Pools

Pools of overhead costs assigned to products and services according to the activities that drive costs.

Machine-Hours

A measure of production output or activity based on the number of hours machines are in operation.

Batches

Groups of items or products processed or produced together as a single lot within a manufacturing or production process.